Private Equity has become an increasingly proliferating approach in mid-market sector companies. What are the attractive benefits? One can say that all those businesses that struggle to take it to the next level, the best recommenced suitable option for them is to believe in private equity and its powers.
Private Equity – Mutual Benefits for Buyer and Seller
Michael Akkawi believes that benefit and provide guidance to mid-market companies is quite substantial. He says that private equity funds are of mutual benefit – not only they help midsized companies to grow but also provide profit to the investors. Most of the private equity investors consider a mid-market company as an optimum investment target – the best practical example is the Town Shoes store. The company started initially only as one store and that too, in a strip mall but it is worth mentioning that with the added advantages of private equity, now the outlet has a wide chain of more than 100 outlets!
Town Shoes Expansion Story – True Example of Private Equity Advantages
Believing in Michael Akkawi to bring positive finance management, Torys has always distinguished him as an outstanding employee. He explains how Town Shoes was able to capture a high-end retail market. The founders were struggling to make a transition of the company from a family-found business to a big firm and exploring the options to access the capital required to materialize their goals. As a result, the founders decided to sell controlling interest of their business to Alberta Investment Management Corp. (AIMCO) and Callisto Capital. Callisto Capital is a private equity firm based in Toronto and is managed by Simpson’s team. Michael Akkawi says that the decision made by the founders proved to be a win-win for both the parties – the buyers were able to acquire a well-run business that had plenty of potentials to grow and the owners retained some the equity while making a good sale. In fact, it is the growth story of Towns Shoes that depicts the best example of private equity and its benefits.
Why is Private Equity Preferable in Canada?
Michael Akkawi is of the point of view that Canada’s demographics are playing a vital role in the bloom of private equity firms. Mostly the population is aging and retiring in the coming years. As a result, they are going to make a transition to the business which is going to create enhanced opportunities for mid-sized firms. Moreover, he along with the conquest of his team also conducted research regarding market trends. After analyzing the trends thoroughly, experts concluded that private equity firms are now showing more conquest and interest in buying mid-market companies for promised business advantages. The investors believe that they are going to seek high returns on their investment.
Michael Akkawi further adds that it is best that now the investors have realized and understood the strength of midsized companies in Canada showing more interest and belief in them. The investment clients are now focusing on sharpened business strategies and focus on the hope of gaining a larger profit margin. If a mid-size company is looking forward to acquiring a good solid base, contacting private equity firms is a great option. Moreover, an added advantage is that the owners can help their business to grow methodically and prevent any family feuds.